Urbangrowth NSW given tick of approval

Developers and planning experts have applauded the formation of a powerful new government organisation charged with fast-tracking housing construction in NSW.

Urbangrowth NSW, announced by the NSW government last week, will have the power to acquire land, co-ordinate infrastructure delivery and bring together the private sector and government departments.

NSW Planning Minister Brad Hazzard said other states had “targeted government intervention in the property market”. It was needed here to break down the “silo” mentality of government departments and deal with fragmented ownership of land in housing growth areas.

“It will have the capacity to get people talking and hopefully will use its greater coercive powers sparingly but as an incentive to get people to the table,” Mr Hazzard said.

He said the government was developing rigorous fairness guidelines to defend individual property rights.

Tim Williams, strategic adviser to the Committee for Sydney, said the private sector needed help to deliver housing and Urbangrowth NSW would be a “game-changer”.

“The agency should be involved in developments of scale where the objective is to create new town centres for Sydney rather than just carpeting housing,” Dr Williams said.

Governments have always held power to acquire land for public services such as roads, railway lines and airports. But the process becomes more controversial when land is acquired for the private sector to develop it.

Parramatta Council in Sydney's west acquired land belonging to Sydney property investor Ray Fazzolari in 2009. It was to form part of a $1.6 billion residential and public space development by Melbourne developer Grocon. Three years later the land is sitting unused.

“If they came along and said we will pay you market value assuming this development is going ahead, that’s OK,” Mr Fazzolari said. “But the problem with compulsory acquisition is they don’t take account of the future value of the property.”

He thinks the new organisation’s power to acquire land does not bode well for small landowners in outer Sydney.

“They say we’re going to acquire it, because it’s only a farm, then they re-zone it and quadruple its value. Is that right or is that wrong? It’s taking away people’s future.”

The Australian Financial Review

BY Ben Hurley

Ben writes about emerging companies, entrepreneurship and property for BRW.